The cost of adopting the 2009 IECC - Alabama

Upgrading homes in Alabama to the 2009 IECC will pay major dividends for Alabama families—paying off the
initial investment in a matter of months.
For the average new home1, BCAP conservatively estimates the costs of the new code will add 0.3% in incre-
mental costs, for a total of $668.76 per new home. Fortunately, Alabama homebuyers won’t have to reach into
their wallets to pay this added cost. When rolled into a mortgage, the incremental cost is much smaller. Ad-
ditional costs to homebuyers will mean a down payment increase of $133.75, and $2.60 on monthly mortgage
bills.
For every month they own the home, however, homeowners will save $17.08—for a total of $205.00 per year.
With these energy savings, the initial investment on their mortgage will pay off in only ten months, leaving
them with an extra $14 per month, and a total of $43 extra in their pocket by the end of their first year in
the house.
Cost-Benefit Analysis for New Homes Built to the 2009 IECC

Month Costs Energy Bill Savings Cumulative Savings

Month 1 $(133.75) $17.08 $(116.67)
Month 2 $(2.60) $17.08 $(102.19)
Month 3 $(2.60) $17.08 $(87.70)
Month 4 $(2.60) $17.08 $(73.22)
Month 5 $(2.60) $17.08 $(58.74)
Month 6 $(2.60) $17.08 $(44.25)
Month 7 $(2.60) $17.08 $(29.77)
Month 8 $(2.60) $17.08 $(15.29)
Month 9 $(2.60) $17.08 $(0.80)
Month 10 $(2.60) $17.08 $13.68 Break Even - Month 10
Month 11 $(2.60) $17.08 $28.16
Month 12 $(2.60) $17.08 $42.65

1 - This model assumes an average sale price of $267,451 for a 2,400 square foot home. The mortgage is conservatively set at 30 years, with 20%
down and the current average nationwide interest rate of 4.14 percent. With a lower down payment percentage, consumers will break even on
their investment even sooner. www.bcap-ocean.org
Homes are the biggest investment we make. Why shouldn’t they come with
basic upgrades that save money for a lifetime? While it’s true that homeowners
can always improve the efficiency of their homes, it is far more cost effective to
upgrade building components during construction, putting in better windows or
swapping out one grade of insulation for a better one. Here’s what buyers get
with the 2009 IECC:

Lighting: $50

Window Upgrades: $146-$300

(depending on climate zone)

Duct Sealing and Testing: $350

Depending on requirements specific to the climate zone, building to the 2009 IECC will upgrade windows, lowering
the U factor from .75 to .65-.5, and SHGC from .5 to .3, assure HVAC ducts are sealed, and install high efficiency
lighting in all fixtures.